Cost / Benefit Analysis

Analysis Process

Purchasing additional service credit is an investment in your future retirement. When Merced County Employees' Retirement Association (MCERA) provides you with the cost of the purchase, you will also receive an estimate of the additional retirement benefit the purchased service will give you.


You can find out how long it will take to recover your investment by dividing the cost of the investment by the monthly benefit. For example:

Total cost ÷ additional monthly benefit= months to recover cost
$3,936 cost ÷ $80 additional monthly benefit = 50 months
50 ÷ 12 = 4.1 years

In this example, the cost of the purchase is recovered 4.1 years after retirement.